Please Note: Blog posts are not selected, edited or screened by Seeking Alpha editors.

ValuEngine Models Like Infinera Despite Recent Pullback

|Includes: Infinera Corporation (INFN)
Go to ValuEngine.com
November 10, 2010
ATTENTION Advanced Investors and Finance Professionals:
If you are reading this you should download ValuEngine Institutional Software to see how VE’s powerful quantitative tools can increase your productivity and effectiveness.

Seeking Alpha Readers should check out our Seeking Alpha VE Investment App HERE.

To Infinity and Beyond

Models Like Infinera Despite Recent Pullback

  ValuEngine has issued a STRONG BUY recommendation for INFINERA CORP (NASDAQ:INFN).  Based on the information we have gathered and our resulting research, we feel that INFINERA CORP has the probability to OUTPERFORM average market performance for the next year. The company exhibits ATTRACTIVE company size, market valuation and expected EPS growth.

  Based on available data as of Nov. 10, 2010, we believe that INFINERA CORP should be trading at $9.19. This makes INFINERA CORP 6.83% undervalued. Fair Value indicates what we believe the stock should be trading at today if the stock market were perfectly efficient and everything traded at its true worth. For INFINERA CORP, we base this on actual earnings per share (NYSEARCA:EPS) for the previous four quarters of -$0.43, forecasted EPS for the next four quarters of -$0.33, and correlations to the 30- year Treasury bond yield of 3.92%.

  INFINERA CORP provides Digital Optical Networking systems to telecommunications carriers, cable operators and other service providers worldwide. INFINERA CORP's large-scale photonic integrated circuit incorporates hundred Gigabits per second of transmit and receive capacity and the functionality of more than sixty discrete optical components into a pair of indium phosphide chips. Infinera's DTN system and PIC technology are designed to provide optical networks that provide operating simplicity, enhanced revenue generation, faster time-to-service and capital cost savings.

  This stock has been puzzling for investors.  INFINERA recently took a dive from the $12 range down to $7.95 only to bounce back.  ANalysts have a hard time figuring out how to deal with its strong revenues despite the fact that the company's long-term product innovation seems to be lacking.  Year-over-year revenues and accounts receivable were up 56% and 18.6% respectively in the last quarter so no issue there.  The company has also been on a hiring binge--hardly the mark of a company in trouble.

  Subscribers can check out the latest figures on INFINERA from our models HERE.

Seeking Alpha Readers should check out our Seeking Alpha VE Investment App HERE.

Currently, you can research more than 400 ADRs and other foreign stocks with ValuEngine's software and website! 

We also offer research reports on more than 700 Canadian Companies on our Research Report Web Page

Market Indices Data
  Latest Change YTD
Dow Jones
11,314.00 -32.77 8.50%
NASDAQ Composite
2,560.85 -2.13 12.85%
Russell 2000
726.22 0.24 14.53%
S&P 500
1,211.22 -2.18 8.62%

 

ValuEngine Market Overview
Summary of VE Stock Universe
Stocks Undervalued
51.82%
Stocks Overvalued
48.18%
Stocks Undervalued by 20%
23.07%
Stocks Overvalued by 20%
17.61%

 

ValuEngine Sector Overview
Sector Change MTD YTD Valuation Last 12-MReturn P/E Ratio
Multi-Sector Conglomerates -0.91% 5.56% 17.15% 35.01% overvalued 39.07% 52.15
Oils-Energy -0.44% 6.36% 12.52% 12.42% overvalued 36.08% 44.00
Basic Materials -2.32% 5.96% 26.36% 11.26% overvalued 54.78% 29.84
Aerospace -0.69% 1.52% 17.42% 3.83% overvalued 25.09% 20.84
Auto-Tires-Trucks -1.77% 6.24% 45.65% 3.04% overvalued 46.65% 35.96
Transportation -1.26% 1.81% 18.62% 2.49% overvalued 32.98% 24.88
Finance -1.60% 3.08% 13.94% 2.36% overvalued 15.48% 29.91
Industrial Products -1.42% 3.01% 15.45% 1.62% overvalued 23.85% 35.04
Utilities -0.54% 1.48% 5.90% 1.48% overvalued 18.33% 27.43
Retail-Wholesale -0.93% 3.85% 14.74% 0.49% overvalued 50.80% 26.02
Consumer Staples -0.83% 3.35% 6.07% 1.12% undervalued 16.46% 24.79
Computer and Technology -1.00% 3.24% 21.84% 1.39% undervalued 31.11% 40.86
Business Services -0.74% 3.04% 10.31% 2.15% undervalued 21.45% 29.74
Consumer Discretionary -1.23% 2.38% 17.56% 5.72% undervalued 18.13% 30.38
Medical -0.73% 2.67% 11.16% 9.77% undervalued 16.26% 33.78
Construction -1.45% 5.29% 3.65% 10.92% undervalued 11.70% 31.86

 

 
 
Close this window
ValuEngine.com - Rational advice, smarter investing.
 
 
 


Disclosure: no positions